Bulletin No.25 May 2019 May 2019

Post & Logistics Bulletin No. 25

OVERVIEW OF JAPAN POSTAL GROUP UNION (JPGU) AND JAPAN POST GROUP

JAPAN POSTAL GROUP UNION (JPGU) JPGU was created as a large, and unified postal union on October 22, 2007, just after privatization of Japan JAPAN POSTAL GROUP UNION (JPGU) Postal Public Corporation on October 1, 2007. It represents PRESIDENT’S REMARKS employees in Japan Post Group and has been making robust efforts to unionize non-union members and Japan Post Group is providing such services as mail delivery, newly recruited employees, as well as part-timers, for post bank, and postal insurance for customers and citizens. stronger collective bargaining power against JP Group Taking advantage of its postal network, Japan Post Group is companies. aiming to become a comprehensive life support group. As employees, JPGU members are providing a firm underpinning JPGU’s members are working hard for the Japan Post for Japan Post Group. Group companies. JPGU consists of 13 regional offices and about 460 branches across the nation (as of August JPGU totals about 244,000 members (180,000 regular and 2018). The slogan of JPGU is “Fraternity, Creation, and 64,000 fixed-term employees). “The aim of JPGU is to pursue Contribution.” JPGU is carrying out various activities happiness for all its union members, and the slogan of JPGU for realizing the true happiness of its union members. is “Fraternity, Creation, and Contribution.” In addition, in order to support our members’ livelihoods, the JPGU offers its own mutual aid services at reasonable Regarding the postal business environment, mail items handled prices. have been declining in a similar manner to those in the countries of Europe and North America. Meanwhile, the numbers of The declining birth rate and the aging of society are parcels have been increasing in accordance with the expansion rapidly advancing, causing a workforce shortage to of E-commerce business logistics. At the same time, re-delivery become a major national issue in Japan. Around fifty for undeliverable items is drastically on the rise due to absence percent of all employees in Japan Post Group are non- of the recipients. For hardworking JPGU members under these regular workers, and the expansion and realization of conditions, JPGU is devising a mechanism through bargaining a decent life is, in general, emerging as a social issue. procedures with managements of Japan Post Group companies As the mission of trade unions, efforts to create quality for excellent working conditions for part-timers and reemployed jobs and to narrow the gap in disparities are great aged workers that JPGU should be proud of. challenges. JPGU is making efforts to create better livelihoods. With At the same time, as we believe that improving social wisdom, we are working together with our members to make environments and vitalizing local communities are also our postal businesses into a Japan Post Group from a glocal important, we are also making various efforts in these point of view. fields.

JAPAN POST GROUP Japan Post, being the universal service provider, is obligated to provide 6-days-a week deliveries at a uniform Mitsugi MASUDA rate for letters and postcards in Japan. Japan’s modern JPGU President postal system dates back to 1871, with the postal bank being founded in 1875, and postal life insurance becoming Japan Postal Group Union available from 1916. The rise of neo-liberalism impacted 5-2-2 Higashi Ueno, Taito-ku, Tokyo, 110-0015 Japan’s postal services in the late 20th and early 21st Phone +81 3 5830 2655 Fax +81 3 5830 2484 centuries. In 2001, as the result of a reorganization of http://www.jprouso.or.jp/en central government ministries, the Japan Postal Agency

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was set up as an exterior entity of the Ministry of Internal customer services. Affairs and Communications (MIC). In 2003, the Japan Postal Public Corporation, a government-owned corporation In 2015 the Japanese government simultaneously floated with a private business management style, was established. a trio of companies, Japan Post Holdings, Japan Post Bank, Japan Post Insurance on the stock market, selling In 2007, that public corporation was privatized into 11% of its shares in Japan Post Bank, Japan Post Insurance, Japan Post Group. Simultaneously, its operations were and the parent Holdings for a total of 1.19 trillion yen. split into four different operations, a post office company, a mail delivery company, a post bank, and postal insurance, In September 2017, the government launched a follow- which were placed under the umbrella of the Japan up sale of Japan Post Holdings, raising about 1.3 trillion Post Holdings. yen ($12.1 billion). The income was used as financial resources for reconstruction following the Great East The privatization and split off of Japan’s postal system Japan Earthquake that occurred in 2011. brought about a downgrading in service levels for customers and citizens. In addition, various business On April 4, 2019, Japan Post Holdings announced it regulations still continued even after privatization, would sell off a certain amount of its shares on stock making it impossible for Japan Post to strengthen the market. In the wake of these disposals of shares, the business base which should have been realized after Japan Post Holding’s stake in these companie will fall privatization. This resulted in fierce competition with to about 65%. private companies. Accordingly, the revised Postal Privatization Act, which obligated a financial universal On April 9, 2019, furthermore, the Finance Ministry service for Japan Post Bank and Japan Post Insurance, announced that the sale will cut the ministry's stake was legislated in 2012. That revised law reorganized to the legally mandated minimum of just over one-third the four different operations into three units under from the current 57%, moving to end a privatization Japan Post Holdings for postal operations and better process that has lasted for more than a decade.

NMN

Stock holding obligations more than 1/3 【Postal Privatizaion Act】 Government’s share about 57%

N N Postal Privatization Act stipulates that all shares should be disposed by considering business conditions of two financial units and impacts on implementation of USO.

Stock holding obligations 100% Gradually selling equity stakes to around 50% 【Postal Privatizaion Act】

N BN JAPAN POST INSURANCE N Currently 89% of shares owned Currently 89% of shares owned

Mail and distribution business Consignment International mail business

International distribution

BNN INSURANCE SERVICES Mail service

N BN

Fig.1 Overview of Japan Post Group (As of April 9, 2019)

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That made Japan Post the third largest parcel operator In global strategy, Japan Post Group bought out an in Japan, followed by the private providers Yamato Australia-based company, Toll Holdings. The 40,000 Transport and Sagawa Express. employees of this company provide freight, logistics, express services, and others with an extensive global Traditional mail volume declines and the parcel volume logistics network across 1,200 locations in more than increase due to the growth of e-commerce, along with 50 countries. the substitution of emails for posted letters, has brought about global-scale impacts. Like other major postal JAPAN POST GROUP’S POSITION operators around the world, Japan Post Group is making Japan Post operates its business through about 24,000 efforts to secure profits through diversifying services post offices as the postal network. The group owns and developing new services such as a “watch-over-your more than 180,000 street post boxes. Japan Post Group -parents service (a system for protecting aged parents)” also operates other businesses, such as six postal hospitals service, real estate development business using postal and about 60 hotels. assets, and others. Japan Post is making use of its existing network and employees for these services. MARKET STRUCTURE Japan Post faces a decrease in volume in the mail market and an increase in volume in the parcel market. In FY2018, Japan Post handled a total of 21,735 million items (17,222 million mail items, 3,637 million booklet parcels, and 876 million parcels). Regarding mail volume, this represents a decrease of about 4.7% to 17,222 million items from FY2016 to FY2018. Meanwhile, parcels increased by about 37.8% in the same period.

Postal Facts Numbers

regular 217,700 Employees non-regular 203,000

Post offices 24,395

ATMs 28,782

Street collection boxes 181,221

Fig. 2 Postal Facts

25,000 Volume of items handled in millions Fukuyama Transporting Seino Transportation 2. .1 2202 (0.7) 2192 (0.9) 215 Yu-Pack parcel Sagawa Express 636 9.6% 697 25.6% 876 (including Yu-Packet) 0.0 Japan Post 20,000 20. 3,146 2.4% 3,498 4.0% 3,637 Yu-Mail (booklet parcels)

Others 18,030 17,730 0.1 (1.7) (2.9) 17,222 Mail 15,000

Yamato Transport 0 2016 2017 2018 . (ears end on March 31)

Fig. 3 Japanese Parcel Delivery Market Shares (FY2017) Fig.4 Trends in Volume of Items Handled

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JPGU’s International Activities

JPGU is affiliated with UNI Global Union, which consists of 900 exercises leadership from a global viewpoint to promote the international unions and 20 million organized workers all over the world. Bro. trade union movement both inside and outside Japan. We continue Mitsugi Masuda, President of JPGU, is serving as Vice President of to help develop human resources in other counties. UNI as well as president of UNI Apro Post & Logistics Sector. He

1. UNI Apro East Asia Postal Unions Forum

Three postal unions in East Asia, JPGU, Chunghwa Postal Workers’ and insurance, the three postal unions are talking about postal Union (CPWU, Taiwan) and Korean Postal Workers’ Union (KPWU, service issues and labor issues on common ground. The 1st Postal Korea) hold a postal forum every year. As the three postal operators Unions Forum was held in 2002, and the forum in 2018 was the in this area are each providing three postal services, mail, savings, 16th meeting.

UNI Apro East Asian Postal Unions Forum (Tokyo, Oct. 2018)

2. JPGU sponsoring UNI Apro/Asia Pacific Postal Union Joint Seminar, SEWU-THP (Thailand’s Postal Union) Joint Seminar in Thailand

The UNI Apro Post and Logistics/APPU Joint Seminar for young trade unionists has been held each year since 2000. It is conducted on the basis of the MoU concluded between UNI Apro and APPU (Asia Pacific Postal Union) to promote social dialogues and develop joint activities. Together with this seminar, a SEWU-THP Joint Seminar was organized in which Thailand's Postal Union leaders and APPU seminar participants also participated.

UNI Apro / SEWU-THP Joint Seminar (Bangkok, July 2018)

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UNI Apro Post and Logistics signed an MOU with APPU for the first time in 2010, and this MOU has now been renewed three times. APPU and UNI Apro agree to promote social dialogue and partnership industrial relations to ensure the sustainable development of postal services in Asia and the Pacific.

At the global level, UNI concluded an MoU with UPU (Universal Postal Union) in 2008, and a new cooperation agreement between UNI and UPU was signed in 2018. The Agreement sets out an agenda of cooperation between UNI and UPU with a strong emphasis on sustainable development and innovation in the postal sector. The MoU promises to further strengthen the bonds between the world’s postal workers and the international postal community.

MoU Signing Ceremony between UNI Apro and APPU (Tokyo, Dec. 2017)

3. UNI Apro/JPGU English Seminar

JPGU and UNI Apro has jointly organized a seminar for JPGU youth members every year since 2011. It is designed for youth members to learn about the international trade union movement and postal environments overseas in English through resource persons from foreign postal unions.

UNI Apro / JPGU English Seminar (Tokyo, Jan. 2019)

4. Other international activities

Seminars for postal unions in the Philippines, Indonesia and India are held every year. Participants from JPGU and counter-partner unions learn and share knowledge about labor conditions and the postal service situation in each country.

JPGU has exchange programs with CPWU, KPWU, Vietnam Union of Information and Communications Workers (VNUICW) and National Committee of the Chinese Defense Industry, Postal and Telecommunications Workers' Union (including the China Post Trade Union). Through these programs, we exchange information and discuss the challenges we face today.

With the help of the UNI liaison councils of the Philippines and Sri Lanka, JPGU Tokyo and JPGU Kanto, regional organizations of JPGU, have been conducting scholarship programs for the children of postal union members in these two countries. This humanitarian assistance is also supported by youth committee members in these UNI Apro / JPGU Kanto Scholarship Award Ceremony two countries. (Colombo, Mar. 2019)

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Aims and tasks of UNI Apro Post & Logistics Sector

UNI Apro Post & Logistics Sector is dealing with any kind of issues shares information with postal communities through the UNI Apro such as pre-research on unionizing postal workers and logistics postal meetings. UNI Apro Post & Logistics holds annual committee workers, coordination between UNI and ITF, coordination between meetings and a sector conference every four years. APPU and UNI Apro, postal research, and others. JPGU has been leading the post & logistics sector as the president UNI Apro Post & Logistics keeps a close watch on postal trends such and has also contributed to the development of the post & logistics as liberalization, privatization, mergers, IPO, digitalization and the trade union movement. impact on workers. UNI Apro Post & Logistics collects, analyzes and

What is UNI-LCJapan? A Domestic Consultation and Coordination Body

UNI-LCJapan (UNI Liaison Council Japan) is the domestic council and has been expanding its membership with determined commitment in which UNI affiliates in Japan discuss their involvement in UNI to organizing. As of February 2019, UNI-LCJapan consists of 14 activities and harmonize their opinions and positions. In conjunction affiliated unions with a total of 1,022,700 members and carries with UNI consolidation, UNI-LCJapan was formed in January 2000 out activities in close cooperation with UNI / UNI Apro.

UNI Liaison Council Japan (UNI-LCJapan) Zendentsu Kaikan 6F, 3-6 Kanda-Surugadai, Chiyoda-ku, Tokyo 101-0062 Japan Tel: +81-3-3251-3374 FAX: +81-3-3257-0839 E-mail: lcjapan @ vesta.dti.ne.jp 06 http://blogs.uniglobalunion.org/japan/